2008
DOI: 10.1080/15332660802516029
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Understanding the Role of Complaint Handling on Consumer Loyalty in Service Relationships

Abstract: ABSTRACT. The authors explore the role of 5 drivers of loyalty: customer usage level, service pricing, service quality, membership in the firm's loyalty program, and satisfaction with complaint handling. The effects of these drivers may differ for customers who complain versus those who do not complain, as well as for satisfied complainers versus dissatisfied complainers. Testing the proposed models with customers of a large airline, the authors found that satisfaction with complaint handling was key to consum… Show more

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Cited by 31 publications
(18 citation statements)
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“…Holloway and Beatty (2003) offer indirect support for this relationship; they found that only 25.6% of the respondents who complained to the service provider planned to return to that company while 74.4% indicated they would not repurchase from that company again. Rothenberger, Grewal, and Iyer (2008) reported that the simple act of complaining is negatively related to the loyalty dimensions of recommendation and reuse. The authors argued that loyalty depends on fair resolution of the service problem.…”
Section: Ccb Pcs and Loyaltymentioning
confidence: 98%
“…Holloway and Beatty (2003) offer indirect support for this relationship; they found that only 25.6% of the respondents who complained to the service provider planned to return to that company while 74.4% indicated they would not repurchase from that company again. Rothenberger, Grewal, and Iyer (2008) reported that the simple act of complaining is negatively related to the loyalty dimensions of recommendation and reuse. The authors argued that loyalty depends on fair resolution of the service problem.…”
Section: Ccb Pcs and Loyaltymentioning
confidence: 98%
“…Passengers lack awareness of their consumer rights. Rothenberger, Grewal, and Iyer (2008) mentioned that price is a concrete cue used by consumers to evaluate quality, value, and purchase intentions. Favorable price perceptions (e.g., fair prices and good value) are likely to enhance customer loyalty (i.e., the greater likelihood of recommending and reusing the service provider).…”
Section: No Actionmentioning
confidence: 99%
“…The opportunity that a complaining customer gives a company in terms of recovery and improvement of the relationship should not be underestimated. Companies who do not rise to the challenge of complaining customers are turning down the important opportunity of reclaiming and improving a relationship (Rothenberger et al, 2008). Companies who have not as yet understood this, urgently need to reconsider their thinking and management such that they regard complaints as a valuable source of market intelligence which enables them to solve the customer"s problem and improve the company"s offerings (Priluck & Lala, 2009).…”
Section: The Importance Of Handling Customer Complaints After a Servimentioning
confidence: 99%